July 3 Avon Products Inc has sold its
Silpada Designs jewellery business for $85 million, three years
after buying it for $650 million, to focus on its core beauty
The decision to sell to Rhinestone Holdings Inc, a newly
formed entity owned by the founders of Silpada, was made because
of the time and investment required to return the business to
historical levels of profitability, Avon said. ()
"Divesting Silpada is an important step in our plan and will
enable us to focus our resources on the core Avon business,"
Avon Chief Executive Sheri McCoy said.
Avon expects to record a non-cash pretax charge of about $80
million in the second quarter of 2013, but it will receive up to
$15 million back from Silpada if the jewellery business achieves
specific earnings targets over two years.